What is Michigan's Earned Sick Time Act?

A state law that requires covered employers to provide paid earned sick time, with rules for accrual, use, notice and recordkeeping.

How does sick time accrue?

Generally one hour for every 30 hours worked, subject to annual caps that differ for small businesses.

Is it the same as PTO?

A PTO policy can satisfy the law if it meets the minimum requirements. Confirm this with your attorney.

Does this affect our benefits?

Yes, because it interacts with leave, payroll and eligibility. We help align them.

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29 U.S.C. 206(d) and MCL 37.2202

Pay equity law treats benefits as part of pay, and employees may discuss it.

Federal and Michigan law bar pay discrimination, the National Labor Relations Act protects employees who talk about wages, and the value of benefits counts as part of the pay being compared.

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What It Requires

The basics for employers.

A plain-English summary. This is general information, not legal advice, and the rules change, so check the current text.

Equal Pay Act

Employers may not pay employees of different sexes unequally for equal work on jobs requiring equal skill, effort and responsibility under similar conditions, and wages include fringe benefits (29 U.S.C. 206(d); 29 CFR 1620.10).

Title VII and Elliott-Larsen

Federal and Michigan civil rights laws prohibit discrimination in compensation and in the terms and conditions of employment, which includes benefits (42 U.S.C. 2000e-2; MCL 37.2202).

Right to Discuss Pay

Section 7 of the National Labor Relations Act protects employees who discuss wages and working conditions, and a blanket pay secrecy rule can violate it (29 U.S.C. 157 and 158(a)(1)).

In Practice

How it plays out.

Pay claims rarely start with a spreadsheet. They start when two employees compare notes, which is protected activity for most private-sector employees, so a pay secrecy policy in a handbook creates risk without preventing the conversation.

The practical defense is a documented reason for each pay difference, such as seniority, merit, production or a factor other than sex. Employers who can show how pay was set for each role are in a far better position than those who rely on negotiation history.

Total compensation is what gets compared. A difference in employer premium contributions, plan access or eligibility class can be part of a pay equity question, so benefit rules should be applied by written criteria and not by individual deal.

Benefits Angle

Where this shows up in your plan.

Employer contribution strategy is a pay decision. Giving one employee a richer contribution or an earlier start date than a comparable employee needs a business reason that is written down and not tied to a protected characteristic.

Eligibility classes should be defined by objective factors such as hours, job class or location. Plans that define classes in a way that tracks a protected group invite a claim, and nondiscrimination testing rules also apply to certain plans.

When an offer letter promises a benefit, the plan document and payroll must deliver it. Side promises are a common source of inconsistent treatment between employees in the same job.

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